v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 18. Segment Reporting

 


The Company has two operating segments – digital assets and merchant banking. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. The Company’s digital assets segment includes the operations related to the ETH treasury strategy. Our merchant banking segment includes our equity and other holdings. The “other” category primarily includes rental income and expenses related to the Company’s real estate in Canada and the land and building previously owned and operated by Digital Ignition.

 

The following tables present the financial information for each segment that is specifically identifiable or based on allocations using internal methodology for the years ended December 31, 2025 and 2024 (in thousands):

 

   Digital Assets   Merchant Banking   Other   Total 
   Year Ended December 31, 2025 
   Digital Assets   Merchant Banking   Other   Total 
ETH staking rewards  $1,475   $-   $-   $1,475 
Rental income   -    -    415    415 
Merchant banking advisory fees   -    523    -    523 
Total revenue   1,475    523    415    2,413 
                     
Compensation costs   (655)   (1,239)   -    (1,894)
Professional fees   (574)   (608)   -    (1,182)
Bank and custodial fees   (90)   (2)   -    (92)
Realized loss on digital assets   (5,815)   -    -    (5,815)
Unrealized measurement of fair value of ETH digital assets   (38,327)   -    -    (38,327)
Loss on equity holdings   -    (5,503)   -    (5,503)
Depreciation and amortization   -    -    (291)   (291)
Other operating expenses   (11)   (92)   -    (103)
Interest expense, net   -    -    (113)   (113)
Segment (loss) income before taxes   (43,997)   (6,921)   11    (50,907)
                     
Corporate and other non-segment operating expenses                  (10,957)
Stock-based compensation                  (7,760)
Foreign currency transaction gain                  1,936 
Interest expense, net                  (19)
Loss from continuing operations before taxes                 $(67,707)

 

 

   Digital Assets   Merchant Banking   Other   Total 
   Year Ended December 31, 2024 
   Digital Assets   Merchant Banking   Other   Total 
ETH staking rewards  $-   $-   $-   $- 
Rental income   -    -    704    704 
Merchant banking advisory fees         -    75    -    75 
Total revenue   -    75    704    779 
                     
Compensation costs   -    (679)   (104)   (783)
Professional fees   -    (400)   -    (400)
Loss on equity holdings   -    (14,675)   -    (14,675)
Depreciation and amortization   -    (18)   (384)   (402)
Other operating expenses   -    (91)   (170)   (261)
Impairment   -    -    (1,475)   (1,475)
Interest expense, net   -    -    (225)   (225)
Segment loss before taxes   -    (15,788)   (1,654)   (17,442)
                     
Corporate and other non-segment operating expenses                  (7,552)
Stock-based compensation                  (1,618)
Bargain purchase on acquisition                  2,321 
Interest expense, net                  (78)
Loss from continuing operations before taxes                 $(24,369)

 

The following table presents the Company’s specifically identifiable assets for each of the Company’s segments as of December 31, 2024 (in thousands).

 

   December 31, 2025 
  

Merchant

Banking

   Digital Assets   Other   Total 
Segment assets  $14,677   $119,384   $29,783   $163,844 

 

   December 31, 2024 
  

Merchant

Banking

   Digital Assets   Other   Total 
Segment assets  $60,073   $         -   $49,396   $109,469 

 

 

The “other” segment assets includes $13.9 million and $39.8 million of assets of discontinued operations as of December 31, 2025 and December 31, 2024, respectively, which are related to the Company’s reinsurance and managed services businesses.

 

There were no capital expenditures during 2025 or 2024.